Offering Memorandum Leech Industries

Leech Industries | Meadville, PA 1

13144 Dickson Rd, Meadville, PA 16335

Offering Memorandum

Leech Industries


Offered exclusively by

Stan Johnson Company180 Madison Ave | Suite 1500New York, New York 10016P: +1 646.778.5580 | F: +1 646.778.5561

stanjohnsonco.com

Confidentiality and Restricted Use AgreementThis Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for

your consideration of the opportunity to acquire the commercial property described herein (the “Property”).

This COM may be used only as stated herein and shall not be used for any other purpose, or in any other

manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This

COM contains descriptive materials, financial information and other data compiled by SJC for the convenience

of parties who may be interested in the Property. Such information is not all inclusive and is not represented

to include all information that may be material to an evaluation of the acquisition opportunity presented.

SJC has not independently verified any of the information contained herein and makes no representations

or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions

of documentation and/or financial information contained herein are qualified in their entirety by reference to

the actual documents and/or financial statements, which upon request may be made available. An interested

party must conduct its own independent investigation and verification of any information the party deems

material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the

right to negotiate with any number of interested parties at any time. The Property is offered and sold by its

owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any

customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information

you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any

other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and

claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request

by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the

Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals,

you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees,

representatives, agents and principals, from and with respect to any and all claims and liabilities arising from

or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you

will not provide this COM or any of the Information to any other party unless you first obtain such party’s

acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being

applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy

for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to,

injunctive relief and specific performance, in connection with such a violation and shall not be required to post

a bond when obtaining such relief.

Bradley Feller Managing Director & PartnerPA Broker #AB068695

Contact Broker

mailto:leech-meadville%40stanjohnsonco.com?subject=Leech%20Industries%20-%20Meadville%2C%20PA


ClevelandCleveland

PittsburghPittsburgh

MeadvilleMeadville

N

Property SummaryAddress 13144 Dickinson Rd, Meadville, PA 16335

Rentable Building Area (SF) 83,330 SF

Land Area (AC) 16.5 acres

NOI $608,400

NOI PSF $7.26

Type Industrial / Manufacturing

Offering Price

$7,700,000 Cap Rate

7.90%

($92 PSF)

Stan Johnson Company is pleased to offer to qualified investors an industrial property in Pennsylvania. The Property totals 83,330 SF on 16.5 acres. It is located in Meadville, PA, about 90 miles north of Pittsburgh. The Property will be sold and leased back on a 10-year NNN lease.

Leech Industries manufactures tools and dies for many well known companies across the US. Leech was a family owned business prior to being acquired by the seller in 2021.


Investment Highlights

Subject Property

Tenant Excellent credit ratios

Mission critical headquarters location

Established in 1948

Lease Structure Long-term, 10-year lease

NNN

2% annual increases

Market Located in the "tool belt"

Extremely low vacancy rate of 1.50%

Strong rent growth over the trailing 12 months totaling 5.7%


Tenant Credit


Leech Industries, established in 1948 as Leech Tool & Die Works, has grown to be a full

service manufacturing company for the electronic, aerospace, automotive, and consumer

product industries. Services include tool and die, mold making, stamping, plastic molding,

CNC machining, grinding, laser welding, zinc die casting, and assembly operations. The

company strives to offer competitive pricing and on-time delivery while maintaining

stringent standards of quality.

Statistical process control techniques are used throughout the manufacturing facilities

as required, and the quality system implemented has successfully attained ISO 9001:2015

certification. The team at Leech strives to offer the best value, personalized service, and

must prove their value and leadership.

Company Overview

Tenant Credit

Tenant Leech Holding, LLC

Company Type Private

Industry Manufacturing

Website www.leechind.com


Joe Leech arrived in the United States from Britain in 1921. He lived in

Chicago, then Buffalo, working as a supervisor for manufacturers of time

fuses, detonators, and small shell casings. In 1938, Leech settled down in

Meadville, Pennsylvania, finding employment as a toolmaker at Talon Inc.'s

experimental plant, the birthplace of the zipper.

In 1948, Leech retired from his job at Talon Inc. and founded Leech Tool &

Die Works with his three sons. The company started in a barn and former

chicken coop in their backyard on Dickson Road. Soon after, Leech Tool

& Die Works grew into a new 30 by 70-foot cement-block building and

employed 14 people. The plant was humming with activity, making small

tools and dies for companies all over the United States, as well as for the

United States Government.

Company History

1948

1950-1960

1970-1980

2000

Today

Through the 1950s and 1960s, Leech Tool & Die Works expanded their facilities several times. As Joe Leech retired, leadership

of the company passed to the second generation of the Leech family, and operations in the plant expanded to include surface

grinding, lathing, drill pressing, milling, heat-treatment, and plating.

In the 1970s and 1980s, Leech Tool & Die Works continued adding on to its facilities, and the third generation of the Leech

family started to become involved in the business. During this time, the company ventured into CNC machining, progressive

die stamping, printer component assembly, and plastic molding. Leech Tool & Die Works also had two other plants in the

Meadville area, and at one point, experimented with a molding and assembly plant in Nogales, Mexico.

In the new millennium, Leech Industries continues under the leadership of Joe’s third and fourth generations to grow as a full-

service manufacturer offering a wide range of processes and services, from in-house designs to finished products, including

electronic, aerospace, automotive, and consumer products. The company strives to offer competitive pricing and on-time

delivery while maintaining stringent standards of quality.

Statistical process control techniques are used throughout the manufacturing facilities as required, and the quality system

implemented has successfully attained ISO 9001:2015 certification.

The team at Leech strives to offer the best value, personalized service, and must prove their value and leadership.


Precision & CNC Machining

United States Market Highlights:

• Projected to become $129 Billion industry annually by 2026.

• 5.5% CAGR Projection over next six years.

• Economists project additional growth for the precision contract manufacturing

industry as supply chains reorient back towards the United States due to

COVID-19 concerns.

Industry Overview

$129 Billion industry

The precision machining industry in the United Stated is projected for outsized growth due to the increasing need for on-demand components as

supply chains become more complex in an ever-globalizing economy. Companies best poised to recognize the bulk of this growth are those with

CNC machining capabilities. Computer-aided manufacturing (CAM) and computer-aided design (CAD) in product design and prototyping greatly

enhance manufacturers’ ability to deliver high-precision components on time. CNC capabilities drastically reduce operating costs and improve

the efficiency of production. According to economists, “As companies increasingly embrace industrial automation, CNC machining tools are

being used to help reduce costs and increase production tempo. Plus, highly precise tolerances can be repeatedly achieved with CNC machining,

helping small and large businesses alike compete and allowing the flexibility to work with almost any material.” (ThomasNet)

Precision Machining Trends:

• Many CNC machining trends for 2020 and beyond are the increasing prevalence of tools and technologies that help shops adapt to a

highly competitive, global manufacturing marketplace. The buyers, procurers, engineers, and supply chain managers who are purchasing

manufactured components have an objective to secure quality suppliers at low costs and with timely deliveries. With the evolution of the

internet, all systems are becoming interconnected, from the digital probes monitoring workpieces to MaaS platforms that bring in new work.

• Machine shops are building more flexible workflows, with quicker responses to lower volume work and tighter manufacturing deadlines

on production projects. Internal processes and planning software is improving throughput, increasing daily revenue and discovering more

capacity even on legacy equipment. In a market that increasingly demands shorter lead times and cheaper prices, novel new technologies,

including those in additive manufacturing, are equipping the machining workforce with the necessary tools to take on the challenges of a

global marketplace. (Xometry)


CustomersLeech Industries is a trusted supplier to some of the largest companies in the world with both national and international reach. Leech Industries

supplies OEMs, Tier I, and Tier II suppliers across a multitude of industries:

Aerospace Consumer Products Electronics

Medical Automotive

32% 29% 19%

13% 6%


Lease Structure


Lease Abstract

Tenant Leech Industries

Address 13144 Dickson Rd, Meadville, PA 16335

Tenancy Single

RBA 83,330

Building 1 61,000

Building 2 22,330

Land Area (AC) 16.50

Commencement Date Lease commences at closing

Lease Term 10 Years

Lease Expiration 10 years from closing

Current Base Rent $608,400

Annual Increases 2.00%

Expense Handling NNN

Renewal Options TBD

Landlord Responsibilites Roof and Structure

Tenant Resposibilities Real Estate Taxes, Insurance, Repairs and Maintenance

Exclusive Option Tenant has option to add an additional 30,000 SF building on the parcel

Rent Schedule

Year Monthly Base Rent Annual Base Rent Increase

1 $50,700.00 $608,400.00 -

2 $51,714.00 $620,568.00 2.00%

3 $52,748.28 $632,979.36 2.00%

4 $53,803.25 $645,638.95 2.00%

5 $54,879.31 $658,551.73 2.00%

6 $55,976.90 $671,722.76 2.00%

7 $57,096.44 $685,157.22 2.00%

8 $58,238.36 $698,860.36 2.00%

9 $59,403.13 $712,837.57 2.00%

10 $60,591.19 $727,094.32 2.00%

N

Building 1Building 1



Real Estate


Location OverviewMeadville is a city located in Northwestern Pennsylvania

within 40 miles of Erie and 90 miles of Pittsburgh. Meadville

is the County seat for Crawford County. The town has more

than 13,000 full time residents and 2,000 Allegheny College

students.

Meadville is an active center for business, industry, education,

the arts, recreation, service and tourism. City, county and

state government offices are conveniently located in the

downtown business district.

Crawford County is a region rich in reputation for its

industrial innovation and entrepreneurial culture. Largely

rural, business development and operating costs are low to

moderate while access to amenities and services associated

with major hubs is quickly available.

Crawford County is a part of the Northwest Pennsylvania

workforce development area NWPA Job Connect, which

includes Clarion, Crawford, Erie, Forest, Venango, and

Warren counties. These counties have a combined labor

force of 257,000.

Meadville, PA

Crawford County Top Employers (2nd Quarter, 2020)

1 Meadville Medical Center2 State Government3 Crawford County4 Wal-Mart Associates Inc5 Crawford Central School District6 Allegheny College7 Acutec Precision Aerospace Inc8 Wesbury United Methodist Community9 Channellock Inc10 Greenleaf Corporation11 Penncrest School District12 The Arc of Crawford County Inc13 C&J Industries Inc14 Big Heart Pet Brands15 Titusville Area School District16 Federal Government17 Lord Corporation18 Meadville Forging Company Inc19 Titusville Hospital20 Rolling Fields Inc21 Vitro Flat Glass LLC22 Giant Eagle Inc23 Advanced Cast Products Inc24 Conneaut School District25 Home Depot USA Inc

26 J M Manufacturing Company Inc27 MacLean-Fogg Company28 Universal Pressure Pumping Inc29 Dolgencorp LLC30 Hazlett Tree Service Inc31 Molded Fiber Glass Companies32 Viking Tool & Gage Inc33 Bethesda Children's Home34 BSI Financial Services35 Leech Industries Inc35 Leech Industries Inc36 Park Avenue Rehab Center LLC37 Sheetz Inc38 Suit-Kote Corporation39 City of Meadville40 Fast Food Enterprises 341 AC School Services Inc42 Roser Technologies Inc43 Oil Creek Plastics Inc44 Ernst Seeds45 United Comm Independence Programs46 Charter Plastics Inc47 Miller Brothers Staffing Solutions48 United Refining Company of PA49 Titusville Healthcare and Rehabilit50 Touchstone Solutions Inc

Source: www.workstats.dli.pa.gov/Documents/Top%2050/Crawford_County_Top_50.pdf


Market Overview

Meadville, PA Market

Availability

Vacancy Rate 1.50%

Vacant SF 47K

Inventory

Buildings 105

Inventory SF 3.2M

Under Construction SF 0

12 Mo Delivered SF 0

Demand

12 Month Net Absorption 16.2K

Sales

12 Mo Properties Sold 7

12 Mo Sale Volume $2.4M

Key Metrics

Source: costar.com

Meadville Industrial Market

16.2K 12 Mo Net Absorption in SF

1.5%

Vacancy Rate

5.7%

12 Mo Rent Growth

Meadville, PA


1-Mile Avg. HH Income5-Mile Population

$80K+25K+N

DemographicsPopulation 1 mile 3 miles 5 miles

2020 Population 2,964 19,018 25,312

2025 Population 2,912 18,626 24,809

Households 1 mile 3 miles 5 miles

2020 Total Households 1,200 7,886 10,489

2025 Total Households 1,178 7,740 10,309

Household Income 1 mile 3 miles 5 miles

2020 Average Household Income $80,712 $59,735 $62,167


Location Meadville, PA

County Crawford County

Tenancy Single

Property Type Industrial

Use Manufacturing/ Distribution

Total SF 83,330

Building 1 SF 61,000

Building 2 SF 22,330

Land Area 16.50 acres

Year Built TBD

Construction Metal/ Masonry

FAR 0.12

Ownership Interest Leased Fee

Property Details



N

Building 2Building 2 1 - 10x10 drive in

1 - 10x10 dock height

Building 1Building 1 2 - 12x12 dock height

2 - 12x12 drive in


Property Aerials


Property Photos


Property Photos


N

22,330 SF22,330 SF

61,000 SF61,000 SF


N

Roff School Roff School TavernTavern

BLOOMING VALLEY RD (± 4,354 VPD)

LESLIE RD (± 1,910 VPD)

DICKSON RD (± 453 VPD)

Crawford County Fairgrounds

Building 2 Building 2 22,330 SF22,330 SF

Building 1 Building 1 61,000 SF61,000 SF


going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company

180 Madison Avenue | Suite 1500 New York City, NY 10016 P: 646.778.5560

www.stanjohnsonco.com

Contact Broker

Bradley Feller Managing Director & PartnerPA Broker #AB068695

mailto:leech-meadville%40stanjohnsonco.com?subject=Leech%20Industries%20-%20Meadville%2C%20PA